The number of single family homes sold in the East Bay fell 7% March 2024 vs. March 2023. This is surprising given the fact that new listings were up about 20%. Despite the higher supply, properties still generated high levels of competition, with median price increasing an average of 8%, and in some regions even higher (e.g. Richmond up 19%, Lafayette up 15%). Homes sold an average of 8% over list price, about flat compared to last year; the highest average was 25% in Piedmont.

 

Looking at all of Q1 2024 (Jan-Mar), the Inner East Bay real estate market is recovering from a fairly weak 2023. The number of listings and sales are on the increase, and specific listings and neighborhoods are experiencing significant price increases. But in other cases, median price is down slightly and some properties receive no offers.

 

The number of new listings that have come to market between 1/1 and 4/8 is 23% higher than the same time period the year before. However, the number of newly written contracts is up only 5%; in other words, listing activity is outpacing buyer activity. The general consensus is that this is not due to a lack of buyers; high prices are limiting their options, from high mortgage rates (i.e. weaker purchasing power) to increasing home insurance costs. Unless buyers pick up the slack, we may see falling prices in the coming months.

 

That being said, properties that are attractive to buyers (as defined by condition, location, and list price) are generating high levels of competition. For example, if you look only at 3BD single family home prices between 1,000 and 2,000 square feet (Q1 2024 vs. 2023), prices in North Berkeley are up 9%, 15% in El Cerrito, and 32% in North Oakland. Only Montclair is down slightly by 3%.

 

 

On balance, competition remains relatively high, with Inner East Bay single family home listings selling at an average of 7% over list in an average of 31 days.

 

We are just now starting to see signs of the spring market, so as more data comes in, we will get a better idea as to how individual neighborhoods - and the Inner East Bay as a whole - will perform. Reach out if you would like a report specific to your needs.